Last checked at 4 Nov 2010 07:00
Immediate release | 4 November 2010 |
Petra Diamonds Limited
("Petra" or "the Company" or "the Group")
Completion of IFC / RMB Debt Facilities
Petra announces that financial close in relation to the IFC (a member of the World Bank Group) and Rand Merchant Bank ("RMB") (a division of FirstRand Bank Limited) debt facilities of approximately US$83.5 million was reached today and this transaction has now completed.
These debt facilities provide Petra with a US$40 million loan from IFC and a US$43.5 million (ZAR300 million) loan from RMB, as well as the extension of the Company's existing US$14.5 million (ZAR100 million) FirstRand Bank Limited group overdraft facility. Together with contributions from Petra's own treasury, the facilities will primarily finance the expansions of the Williamson mine in Tanzania and the Cullinan mine in South Africa. The material details of the debt facilities were set out in the Company's announcements of 2 June 2010 and 29 September 2010.
The Group will consider carefully whether it needs to take full advantage of the draw-down of these debt facilities, but to secure the financing at this time provides Petra with the scope and flexibility to bring the Company's stated production and revenue growth opportunities to account. Even if the facilities are fully drawn-down, Group debt levels will remain within comfortable levels. Petra will shortly settle the outstanding US$31 million loan due to Al Rajhi Holdings W. L. L., thereby removing this short term debt obligation from Petra's balance sheet.
Notes
1. An exchange rate of US$1:R6.90 has been used for the purposes of this announcement.
For further information, please contact:
Cathy Roberts | Telephone: +44 20 7318 0452 |
Petra Diamonds, London | cathyr@petradiamonds.com |
Bobby Morse / Katharine Sutton | Telephone: +44 20 7466 5000 |
Buchanan Communications | bobbym@buchanan.uk.com katharines@buchanan.uk.com |
Ryan Gaffney / Andrew Chubb | Telephone: +44 20 7050 6500 |
Canaccord Genuity Limited (NOMAD and Joint Broker) | ryan.gaffney@canaccord.com andrew.chubb@canaccord.com |
Joshua Critchley / Martin Eales | Telephone: +44 20 7653 4000 |
RBC Capital Markets (Joint Broker) | joshua.critchley@rbccm.com martin.eales@rbccm.com |
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About Petra Diamonds
Petra Diamonds is a leading independent diamond mining group and an increasingly important supplier of rough diamonds to the international market. The Company offers a unique growth profile within the diamond sector, with a core objective to double annual production to around two and a half million carats by FY 2014 and more than treble production to over three million carats by FY 2019. Beyond this target, the Group's major resource base of 261 million carats provides scope for further organic growth going forward.
Petra has a well-diversified portfolio, with interests in seven producing mines: six in South Africa (Cullinan, Koffiefontein, Kimberley Underground, Helam, Sedibeng and Star) and one in Tanzania (Williamson).
Petra conducts all its operations according to the highest ethical standards and will only work in countries which are members of the Kimberley Process. The Company is quoted on the AIM market of the London Stock Exchange (AIM: PDL). For more information, visit www.petradiamonds.com.